Analyst CornerWeekly Insights Jun 23, 2016 Coresight Research June 23, 2016 Executive Summary This week’s note “From the Desk of Deborah Weinswig” looks at new data that indicate US shoppers are continuing to prioritize spending on leisure services, such as dining out, ahead of retail categories, such as apparel. In the letter, we outline two possible reasons for this ongoing shift in spending. In a recent Daymon Worldwide survey of 7,000 global consumers ages 18–55, 35% of millennial and Gen X consumers polled said they prefer to buy sustainable products. However, the millennials surveyed were more likely than the Gen Xers to prefer buying products that directly benefit them, while the Gen Xers were more likely than the millennials to prefer buying from companies that support their community or give to charities. India has loosened restrictions in order to become the most open economy for foreign direct investment (FDI). The country allows for automatic FDI approval for companies in the aviation sector and some other sectors, while defense, broadcasting, pharmaceutical and single-brand retail companies can increase their FDI with government approval. Swedish retail giant H&M continues to bet on Latin America, opening a new store in Mexico, its 18th in the country. The new store is located in the Plaza Mayor in the city of León, and is H&M’s second store in the city. The company plans to open 11 new stores in Mexico during 2016. It opened its first store in the country in 2012. This document was generated for
Insight ReportMacy’s President Jeff Gennette to Succeed Terry Lundgren as CEO in 1Q 2017 Coresight Research June 23, 2016 Executive Summary Terry Lundgren will retire from his position as CEO of Macy’s in the first quarter of 2017, but remain Executive Chairman. At that time, Jeff Gennette will transition from his position of President to become the new CEO Gennette was hired as the company’s President in 2014 as part of a succession plan enacted by the Board of Directors Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Insight ReportH&M (STO: HM-B) 2Q16 Results: Sales Growth Slows Coresight Research June 22, 2016 Executive Summary Excluding the effects of local currencies against the Swedish krona, H&M’s 2Q16 sales in the UK were flat, compared with an increase of 5% for all of H&M’s markets. The UK is H&M’s third-largest market after Germany and the US. Sales in March and April were significantly below the company’s plan, as they were negatively affected by unseasonably cool weather during the period. Sales improved in May, increasing by 9%. H&M’s profit in 2Q16 fell by 17%, to SEK5.36 billion from SEK6.45 billion in the same period last year, versus expectations of SEK5.46 billion. Profit was affected by the continued negative impact of the US dollar, but also by increased markdowns and costs related to long-term investments, as well as by lower sales. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Insight ReportFung Global Retail & Technology Attends New Lab Ribbon-Cutting Ceremony Coresight Research June 21, 2016 Executive Summary Today, the Fung Global Retail & Technology team attended the ribbon-cutting ceremony of New Lab, a multidisciplinary design, prototyping and advanced manufacturing hub located at the Brooklyn Navy Yard. The facility is part of an effort to bring technology and manufacturing jobs back to New York City. Building 128, a former machine shop for shipbuilding, has been renovated and transformed into New Lab, which offers a total of 84,000 square feet of space to 50 companies. Tenant companies are engaged in leading-edge technologies in fields such as robotics, nanotechnology, artificial intelligence and life sciences. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Deep DiveThe Silver Series III: Technology for Mobility-Constrained Seniors Coresight Research June 21, 2016 Executive Summary Technology is slowly becoming a welcome addition to seniors’ lives, enabling independence and “aging in place.” Many seniors prefer to remain in their homes in later life, even if they are unable to care for themselves. The most common type of disability among seniors in the US and the UK is difficulty with mobility. New technologies and innovations are helping fulfill various needs that mobility-constrained seniors may have, and enabling them to lead a better quality of life. Robotics and smart homes are helping address seniors’ physiological, social and safety needs, while virtual-learning platforms and social networks are helping fulfill their social and self-esteem needs. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Deep DiveThe Silver Series II: Homecare and Assisted Living Coresight Research June 21, 2016 Executive Summary This is the second report in our series on consumers aged 65 and older and their impact on economies, industries and companies worldwide. Some seniors need specific care as a result of illness or disability, but many also look to in-home care or assisted living to help them deal with everyday living. We estimate that global public spending on long-term health and social care totaled approximately $1.40 trillion in 2015, and we expect it to reach nearly $1.71 trillion in 2020. On average, across 12 major economies, spending on long-term care accounts for around 1.7% of GDP. More seniors are using care services overall, but we seem to be seeing a gradual global shift away from institutional care and toward in-home care. The move toward in-home care has prompted the development of new technology products and services that enable seniors to live independently for longer, and families to participate more directly in administering care to their elderly loved ones. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Insight ReportWeekly Retail Promo Update Jun 19, 2016 Coresight Research June 19, 2016 Executive Summary Stores are offering sales on bathing suits, summer drinks, and cosmetics. Many retailers are focusing on promoting their biggest sellers this week. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Analyst CornerWeekly Insights Jun 17, 2016 Coresight Research June 17, 2016 Executive Summary In New York this week, the Fung Global Retail & Technology team hosted an event called Breakfast with the Disruptors: Women-Led Beauty & Fashion Startups, which attracted a standing-room-only crowd of more than 150. The event featured presentations from seven women-led startups that competed for a $2,500 prize. In a survey of more than 1,000 US consumers, 72% of respondents said they prefer to use a laptop or desktop to shop online. Only 28% said they prefer to use a tablet or smartphone. In addition, 42% said they have never used a tablet to shop online, while 32% said they have never used a smartphone to shop online. Germany’s Metro Group is trialing robots from Starship Technologies to carry shoppers’ purchases through a store in Düsseldorf, so that customers can focus on “hands-free” shopping. These autonomous robots are also being tested to deliver online purchases to customers. On June 10, messaging app Line kicked off its IPO, which is scheduled for July 14 and looks to raise $917 million with an initial share price of $26.21. The Japanese company plans to dual list on the Tokyo and New York Stock Exchanges. Line has 218.4 million active users, but added only 13 million new monthly active users last year. This document was generated for
Event PresentationThe Stores of the Future (ULI) Coresight Research June 16, 2016 Executive SummaryAGENDA ABOUT US THE STORES OF THE FUTURE Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Company Earnings UpdateKroger 1Q16 Results: Beats on Earnings on Strong Margins; Reaffirms Full-Year Guidance Coresight Research June 16, 2016 Executive Summary Kroger reported 1Q16 EPS of $0.70 versus the consensus estimate of $0.69. Total revenue was $34.60 billion versus expectations of $34.88 billion. Comps excluding fuel were up 2.4% versus consensus of 2.5%. Full-year guidance calls for EPS of $2.19–$2.28, consistent with prior guidance. The company believes EPS will be at the low end to the midpoint of that range, based on current fuel margin trends. Kroger expects fuel margins to be at or slightly below the five-year average. Management also reaffirmed its supermarket sales growth guidance of 2.5%–3.5%, excluding fuel. This document was generated for
Insight ReportRite Aid (RAD) 1Q17 Results: Rite Aid Misses Estimates as It Approaches Merger with Walgreens Coresight Research June 16, 2016 Executive Summary Rite Aid reported adjusted fiscal 1Q17 EPS of $0.01 versus the consensus estimate of $0.05. Total revenues were $8.18 billion, up 23.1% year over year, versus expectations of $8.24 billion. Retail pharmacy segment revenues were $6.7 billion and increased by 0.4% year over year, along with an increase in same-store sales of 0.4%. The same-store sales increase was driven by a 0.1% increase in pharmacy sales and a 1.2% increase in front-end sales. Revenues in the pharmacy services segment, which was acquired on June 24, 2015, were $1.6 billion. The quarter’s results reflect strong performance in the pharmacy services segment and the front-end business that was offset by pharmacy reimbursement rate pressure. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Event PresentationIdentifying Whitespaces in a Difficult Retail Environment (RetailExpoHK) Coresight Research June 15, 2016 Executive SummaryAGENDA ABOUT US GLOBAL RETAIL OVERVIEW CONSUMER TRENDS TAKING ACTION Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Event PresentationBreakfast with Disruptors – Investing in Women-Led Startups Coresight Research June 15, 2016 Executive SummaryFour-Quadrant Disruptors Framework with Women-led Startups NEW RETAIL MODELS: HOW WILL THE CONSUMER SHOP IN THE FUTURE ALL CHANNEL: The CONSUMER CAN SHOP WHEREVER + WHENEVER EXPERIENTIAL RETAIL: MAKE THE STORE AN AWESOME PLACE CUSTOMER ENGAGEMENT: HOW DO YOU CONVERT THE CONSUMER Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Insight ReportINDITEX (BME: ITX) 1Q17 Results: Revenue and Profits Beat Estimates Coresight Research June 15, 2016 Executive Summary Inditex reported fiscal 1Q17 revenue of €4.9 billion, up 11.5% year over year and above the consensus estimate of €4.8 billion. Net income (GAAP) increased by 6.3%, to €554.0 million, above the consensus of €544.6 million. EPS was €0.18, an increase of 5.9% versus 1Q16 and in line with consensus. Solid comps and an expanding geographical reach drove up revenue and profit. Tight control of operating expenses also contributed to the results. The company will continue its revenue and store expansion in 2Q17. Analysts expect Inditex revenues to be up 9.8%, to €5.5 billion, and net income (GAAP) to rise by 4.2%, to €672.0 million, in 2Q17. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
